Short Term Trading Weekend Lounge: 29 - 31 July, page-115

STTCOMP BKY, FA Long
Uranium, Spain.

Shares : 200,668,023

MC : $169.6m at 0.845

Ca$h : $11.3m approx.

After investing US$60 million over the past decade Berkeley Energia has moved one step closer to becoming one of the world’s lowest cost uranium producers as it breaks ground at the Salamanca mine in Spain. With approvals in place for initial infrastructure development, work has now commenced on the road realignment and power line upgrade ahead of the main construction.
Initial capital cost of only US$95.7 million.

A Definitive Feasibility Study (DFS) has reported future production at an average of 4.4 million pounds of uranium per year at a cash cost of US$13.30 per pound and at a total cash cost of US$15.06 per pound. Uranium’s current spot price is US$26 per pound with term contract price at US$41 per pound.

During the initial ten year steady state period, based on the most recent UxC forward curve of uranium prices, the project is expected to generate an average annual net profit after tax of US$116 million.

The Company has recently been approached by a number of utilities looking to secure long term off-take agreements. These discussions are underway and off-take arrangements are being negotiated.

When these off-take agreements are announced the share price should continue to increase.
At current prices BKY would be profitable so it has a lot of upside potential based on positive sentiment regarding future U308 prices.